The separation of Panama from Colombia was formalized on 3 November 1903, with the establishment of the Republic of Panama. From the Independence of Panama from Spain in 1821, Panama had simultaneously declared independence from Spain and joined itself to the confederation of Gran Colombia through the Independence Act of Panama. Panama was always tenuously connected to the rest of the country to the south, owing to its remoteness from the government in Bogot and lack of a practical overland connection to the rest of Gran Colombia. In 184041, a short-lived independent republic was established under Toms de Herrera. After rejoining Colombia following a 13-month independence, it remained a province which saw frequent rebellious flare-ups, notably the Panama crisis of 1885, which saw the intervention of the United States Navy, and a reaction by the Chilean Navy.

During the construction of the Panama canal, the initial attempts by France to construct a sea-level canal across the isthmus were secured through treaty with Colombia; however French cost overruns and corruption in the Panama scandals led to abandonment of the Canal for a decade. During the intervening years, local separatists used the political instability of the Thousand Days' War to agitate for political separation from Colombia and establishment of an independent republic. When the United States sought to take over the canal project, the government of Colombia proved difficult to work with, and with the cooperation of French financier Philippe-Jean Bunau-Varilla, Panama simultaneously declared independence from Colombia and negotiated a treaty granting the U.S. the right to construct the canal.

The United States was the first country to recognize the independence of the nascent republic, sending the U.S. Navy to prevent Colombia from retaking the territory during the first days of the new Republic. In exchange for its role in defending the Republic, and for constructing the canal, the U.S. was granted a perpetual lease on the land around the canal, known as the Panama Canal Zone, which was later returned to Panama under the terms of the TorrijosCarter Treaties.

After the United States, many other nations quickly recognized the independent republic, though Colombia refused to do so until 1909, after receiving a $500,000 concession from Panama to cover its share of the debts it owed at independence.



Panama ( (listen) PAN-ə-mah, pan-ə-MAH; Spanish: Panamá IPA: [panaˈma] (listen)), officially the Republic of Panama (Spanish: República de Panamá), is a transcontinental country in Central America and South America, bordered by Costa Rica to the west, Colombia to the southeast, the Caribbean Sea to the north, and the Pacific Ocean to the south. Its capital and largest city is Panama City, whose metropolitan area is home to nearly half the country's 4 million people.Panama was inhabited by indigenous tribes before Spanish colonists arrived in the 16th century. It broke away from Spain in 1821 and joined the Republic of Gran Colombia, a union of Nueva Granada, Ecuador, and Venezuela. After Gran Colombia dissolved in 1831, Panama and Nueva Granada eventually became the Republic of Colombia. With the backing of the United States, Panama seceded from Colombia in 1903, allowing the construction of the Panama Canal to be completed by the US Army Corps of Engineers between 1904 and 1914. The 1977 Torrijos–Carter Treaties agreed to transfer the canal from the United States to Panama on December 31, 1999. The surrounding territory was first returned in 1979.Revenue from canal tolls continues to represent a significant portion of Panama's GDP, although commerce, banking, and tourism are major and growing sectors. It is regarded as having a high-income economy. In 2019 Panama ranked 57th in the world in terms of the Human Development Index. In 2018, Panama was ranked the seventh-most competitive economy in Latin America, according to the World Economic Forum's Global Competitiveness Index. Covering around 40 percent of its land area, Panama's jungles are home to an abundance of tropical plants and animals – some of them found nowhere else on earth. Panama is a founding member of the United Nations and other international organizations such as OAS, LAIA, G77, WHO, and NAM.